Help in understanding the Combat Related Specialty Compensation?

2022-09-15T11:33:04-04:00

Looking for information on the CRSC program . I am 53 20 blended years over 4 active with a VA 30% PTSD with a decorated action, and 10% for tnitiss (not sure if ruled peace time or combat.
The information is confusing as a grey area retire I would have to wait to find out once I start collecting. Pulled this from the DFAS siteEligibility
To qualify for CRSC you must:

be entitled to and/or receiving military retired pay
be rated at least 10 percent by the Department of Veteran’s Affairs (VA)
waive your VA pay from your retired pay ((WHAT IS THIS MEAN))?
file a CRSC application with your Branch of Service

Response by MAJ Ronnie Reams made Sep 15 at 2022 11:53 AM

2022-09-15T11:53:13-04:00

Deduct VA comp from retainer pay that taxed and get it back in CRSC that not taxed. Must be a disability that caused by combat or combat training.

Response by COL Randall C. made Sep 15 at 2022 12:25 PM

2022-09-15T12:25:19-04:00

In a nutshell.

Without modification, you can't "double dip" when getting your retirement and VA payment. Again, without modification, this means that your retirement pay is reduced by the amount of your VA payment (you wave your VA pay from your retired pay) and you get two monthly payments - retirement and VA. The only advantage in this situation is that the VA payment is non-taxable.

CRSC is a restoration of that offset for injuries/illnesses that are related to combat. In your case, let's assume the 10% for Tinnitus is non-combat related and the 30% PTSD is combat related (obviously). I'll also assume that you're getting $2000 a month for a retirement check (I just pulled that number out of the air so I had an example), and that you're single (adjust with the married/dependent rates otherwise).

- Regular retirement would give you $2000 a month which is taxable.
- 40% VA disability means that you would get a non-taxable VA payment for $673.28 and a taxable retirement payment for $1,326.72
- 30% CRSC means you would get three checks - a taxable retirement check for $1,326.72, a non-taxable VA payment for $673.28 and a non-taxable CRSC for $467.39 which is the restoration of the combat-related portion that was deducted from your retirement.

CRSC is basically applicable if you have LESS than a 50% rating from the VA. If you have a 50% or higher rating, CRSC doesn't really apply anymore because of Concurrent Retirement and Disability Pay (CRDP).

If you're eligible for CRDP, then your full retirement is restored and you get a full tax-free VA payment based on your rating (hypothetically, if you were at 50%, then you would get your $2,000 a month retirement and a VA payment of $958.44 (50% with no dependents).